Mitchell’s laws: The more budgets are cut and taxes inceased, the weaker an economy becomes. To survive long term, a monetarily non-sovereign government must have a positive balance of payments. Austerity = poverty and leads to civil disorder. Those, who do not understand the differences between Monetary Sovereignty and monetary non-sovereignty, do not understand economics.
You have seen how the New York Times spreads the economic debt myth in news items focused on the federal deficit. But the myth can be found lurking all over the paper, in articles covering many subjects.
Congress to Sell Public Airwaves to Pay Benefits
Luke Sharrett for The New York Times
WASHINGTON — The need for revenue to partly cover the extension of the payroll tax cut and long-term unemployment benefits has pushed Congress to embrace a generational shift in the country’s media landscape: the auction of public airwaves now used for television broadcasts to create more wireless Internet systems.
The measure would be a rare instance of the government compensating private companies with the proceeds from an auction of public property — broadcast licenses — once given free.
The news is about broadcast licenses. But the article focuses, not on the licenses, but on the federal deficit. There is scant attention to the licenses or the wisdom of awarding them, or the method by which they are awarded. Ostensibly about licenses, the article centers on the budget.
The government, being Monetarily Sovereign, never has a need for revenue. So, any article that begins with “The need for revenue. . . ,” when referring to the U.S. government, is guaranteed to be misleading. And so it is, with the item’s next paragraph.
The government may compensate private companies, but not “with the proceeds.” It may compensate in the amount of the proceeds, but federal payments are not made with federal income. If there were no proceeds, the government could compensate just as well. Proceeds are irrelevant.
The auctions, which are projected to raise more than $25 billion, would also further the Obama administration’s broadband expansion plans and create a nationwide communications network for emergency workers that would allow police, fire and other responders from different departments and jurisdictions to talk to each other directly.
The sweeping changes are even more remarkable because they resulted not from an effort to address communications policy, but from a hard-fought bipartisan compromise to extend a payroll tax holiday and jobless benefits. Republicans insisted that the extension of the unemployment insurance — a cost of roughly $30 billion — be paid for in full, and one area that both sides could agree on was spectrum sales.
Sadly, the mighty New York Times never has questioned the notion that a Monetarily Sovereign government – a government with the unlimited ability to create dollars — and unlimited ability to pay any bills of any size – nevertheless might need, or even use, income. It takes but a few seconds of thought to realize that the unlimited ability to create dollars obviates any need for financial aid.
The payroll tax exemption would be extended through the end of this year, providing a worker earning $50,000 annually with $1,000 more in take-home pay over that time. The bill would also prevent a reimbursement cut for doctors who accept Medicare.
Here was an irrelevancy to communications policy, tossed in as part of the brainwashing of America.
Not everyone agrees on the ultimate benefit of the new policies. Democrats, telecommunications companies and public safety officials have argued that the auctions of public airwaves will create thousands of jobs and billions of dollars of investment to build the systems.
But the House speaker, John A. Boehner, was more lukewarm in his enthusiasm for the measure. While saying that the compromise was “one that I support,” he added: “Let’s be honest. This is an economic relief package, not a bill that’s going to grow the economy and create jobs.”
Huh?? It’s economic relief, but it won’t grow the economy and create jobs? How does that work? Is this the same John Boehner who famously declared the U.S. is “broke”?
Some members of Mr. Boehner’s party disagreed. Representative Fred Upton of Michigan, chairman of the Energy and Commerce Committee, and Representative Greg Walden of Oregon, who leads a communications subcommittee, said in a joint statement that the bill would be “an economic game-changer.”
“With 13 million Americans still seeking employment, job creation is a driving force behind efforts to expand wireless broadband,” the congressmen said in their statement. “Spectrum auctions are not only good public policy for the communications and technology sector, they will produce meaningful job creation when we need it most.”
Do even Republicans pay attention any more to what Boehmer says? He views his job solely as being negative on anything Obama.
About $15 billion of the $30 billion extension in unemployment benefits will be paid for with the proceeds of the incentive auctions.
Wrong, again, New York Times. Can you imagine the benefits to America if the NY Times editors and writers understood Monetary Sovereignty. Is it too much to ask this great newspaper to spend a few minutes reading the facts?
And is it any wonder the American public is confused about U.S. deficits and debt. Everywhere people look, they see references appropriate to a monetarily non-sovereign America, though we have been Monetarily Sovereign since August 15, 1971.
This constant drumbeat of misinformation, found in every part of your daily newspaper, solidly has implanted the myth of American monetary non-sovereignty.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia. Two key equations in economics:
Federal Deficits – Net Imports = Net Private Savings
Gross Domestic Product = Federal Spending + Private Investment and Consumption + Net exports